Law Offices of Howard G. Smith reminds investors of the upcoming April 15, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Avon Products, Inc. (Avon or the Company) (NYSE: AVP) securities between August 2, 2016 and August 2, 2017, inclusive (the Class Period).
Investors suffering losses on their Diplomat investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On August 3, 2017, Avon issued a press release announcing its second quarter 2017 financial results and held a conference call to discuss the results. The Company reported a net loss of $0.12 per share and a 3% decline in active representatives. Avon also reported that Brazil revenue was down 2% in constant dollars, primarily driven by a decrease in Active Representatives. On the call, Avon’s Chief Financial Officer acknowledged that, despite Avons earlier representations, the remedial actions in Brazil (i.e., stricter credit terms applied to recruiting new representatives) were negatively impacting active representatives and revenue in Brazil. On this news, shares of Avon fell $0.36, or 10.71%, to close at $3.00 per share on August 3, 2017, thereby injuring investors.
The Complaint filed in this class action alleges that Defendants made materially false and misleading statements and/or failed to disclose that: (1) Avon was engaged in an undisclosed scheme whereby it significantly loosened its credit terms in order to recruit new representatives in Brazil, its largest market; (2) its specific credit terms in Brazil; (3) Avon failed to increase its allowance for doubtful accounts to account for the changes to its credit terms in Brazil; and (4) as a result of these concealments, Avon stock was trading at artificially inflated prices throughout the class period.
If you purchased shares of Avon during the Class Period you may move the Court no later than April 15, 2019 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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